Mr Papademos made a last-minute TV address to the nation on Saturday
The Greek parliament is debating an unpopular austerity bill demanded in return for a 130bn-euro ($170bn; £110bn) bailout to avoid default.
Prime Minister Lucas Papademos earlier warned that failure to pass the package would "set the country on a disastrous adventure".Some MPs from the governing parties are expected to vote against the package.
But analysts say the bill should still have enough support in parliament. A vote is expected later on Sunday.
Lawmakers are also due to vote on a separate deal with private banks which could see 100bn euros of Greek debt written off.
If the measures are not approved, other eurozone nations and the International Monetary Fund (IMF) say Greece will get no money from them and will face bankruptcy in March, the BBC's Europe correspondent Chris Morris reports from Athens.
Athens has to repay nearly 14.5bn euros in maturing debt on 20 March.
'Ground Zero' warningThe debate began in the early afternoon on Sunday and is expected to carry on into the evening, with the vote not expected until midnight (22:00 GMT).
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What went wrong in Greece?
- Greece's economic reforms, which led to it abandoning the drachma as its currency in favour of the euro in 2002, made it easier for the country to borrow money.
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Pasok, the largest party, and its coalition ally New Democracy - which have both backed the bill - account for more than 230 deputies out of a total of 300.
In a TV address on Saturday, Mr Papademos warned that Greece was "just a breath away from Ground Zero"."The social cost of this programme is limited in comparison with the economic and social catastrophe that would follow if we didn't adopt it," he said.
Savings would be lost, the government would be unable to pay wages or salaries, and imports of fuel, medicine and machinery would be disrupted, he added.
The austerity cuts include:
- 15,000 public-sector job cuts
- liberalisation of labour laws
- lowering the minimum wage by 20% from 751 euros a month to 600 euros
- negotiating a debt write-off with banks.
The Greek cabinet has approved the measures but five government ministers resigned.
Thousands of people are expected to protest against the austerity package in AthensThousands of people are expected to gather for a second day running to protest against the measures, and riot police are on high alert.
Greece cannot service its huge debt, and there are fears that a default could endanger Europe's financial stability and even lead to a break-up of the eurozone.
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